Artificial Intelligence (AI) has been driving the current bull market, with companies like Nvidia and Micron leading the charge. But which one will shine brighter? Let’s take a closer look at these two AI giants.
Nvidia is synonymous with AI, thanks to its dominance in producing high-quality AI chips. The company’s data center segment accounts for the majority of its revenues, with impressive year-over-year growth of 93.6% in the most recent quarter. Nvidia’s stock has been on a tear, with a Strong Buy consensus rating and an average target price of $178.16.
On the other hand, Micron is another player in the AI space, with a market cap of over $110 billion. The company’s high-performance memory solutions are perfectly suited for demanding AI applications. However, Micron’s latest quarterly readout was marred by a disappointing outlook for the February quarter, which raised concerns among analysts and investors.
Morgan Stanley analyst Joseph Moore rates Nvidia as the superior AI stock right now, citing its strong growth prospects and dominance in the market. In contrast, Micron has an Equal-weight rating, indicating that the stock is somewhat torn between its long-term cash-generation potential and short-term challenges.
While both stocks have their strengths and weaknesses, Nvidia seems like a more solid choice for investors. With its Strong Buy consensus rating and average target price of $178.16, it’s clear that Nvidia is poised to shine in the AI space. As always, do your own analysis before making any investment decisions.
Source: https://www.tipranks.com/news/nvidia-or-micron-morgan-stanley-picks-the-superior-ai-stock-to-buy